Report: Icahn Takes 6% Stake in Dell as Rivals Express Interest

The battle over the future of Dell (DELL) heated up on Wednesday as reports indicated activist investor Carl Icahn has amassed a 6% stake, while Blackstone Group (BX) and rivals Hewlett-Packard (HPQ) and Lenovo have expressed interest in the PC maker.

The reports come just hours after Dell’s special committee issued a defense of its sale process, noting it is actively searching for a better deal than the $24.4 billion go-private transaction reached last month that large shareholders have criticized.

According to Bloomberg News, billionaire investor Icahn has amassed a stake of as much as 6% in Dell and will probably vote against the takeover by founder and CEO Michael Dell.

Instead, Icahn will probably push for a special dividend recapitalization of $9 a share, Bloomberg reported.

Meanwhile, Dell has attracted interest from private-equity giant Blackstone and rivals H-P and Lenovo, Bloomberg reported. Dell’s special committee said Wednesday it would continue negotiations on an alternative deal past the period’s March 22 deadline “if a potentially superior proposal emerges.”

However, it’s unlikely that an alternative bid to acquire Dell will emerge, Bloomberg cautioned, noting that the company’s competitors are taking advantage of the go-shop period to gain access to its books.

Neither Round Rock, Texas-based Dell nor its special committee immediately responded to requests for comment on the latest developments.

The reports sent Dell’s shares rallying to their highest level since rumors of a go-private deal first emerged. Dell closed up 1.78% at $14.32, well above the $13.65-a-share takeover bid.

Dell is the No. 3 player in the PC space behind Lenovo and H-P. Last month H-P issued a statement commenting on Dell’s leveraged buyout, noting such transactions “leave existing customers and innovation at the curb” and saying it “plans to take full advantage of that opportunity.”